Each pair contract is a FA token itself and represents the providers' shares. Shares are transferable and can be used in other ecosystem products. The most involved users who want to commit to the protocol can stake their shares to participate in governance.
Currently, governors can vote for which baker the pair's XTZ will be delegated by. In the case of an irresponsible delegate, governors can also ban them.
Each pair has its own governance. The voting power is proportional to the staked shares. The candidate who receives the largest number of votes becomes the delegate. Banning the delegate requires a third of the total votes in the system to be in favour of the ban.
The protocol keeps the current delegate, the next candidate, and the entire voting ledger and veto ledger.
If the vote is in favour of banning the delegate, they will be banned for 3 months and hence cannot receive votes during this period. Users can withdraw their votes or restake them for other bakers. When a delegate is banned, the second-best candidate becomes the delegate. However, if the new delegate is banned afterwards, there will be no delegate until a vote has taken place.
The user can vote for the only candidate with arbitrary votes. The veto can be done only against the current delegate. If the delegate has changed, the total number of vetos are reset and any locked tokens can be withdrawn by the user.
Last modified 7mo ago
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